Your Burning Questions Answered!! PART ONE-The Current Housing Market
In my last VIP Club contest, the question posed to enter the contest was “What is your #1 question regarding your mortgage, credit, or the current housing market?”
While I am qualified to give some guidance over your mortgage and credit answers, I went to the experts in the housing market for their take on your current housing market questions. Johann Aceron-Mclean and Shenita Persaud-Zalloni, two of Edmonton's best realtors I have ever worked with, took the time to answer your burning questions:
- Will there be a housing crash next year?
Johann: It's hard to predict if there will be a housing crash in the next while. The best that any of us can do is to get our finances in order and determine if homeownership is the best option.
Shenita: There are no signs that indicate that there will be a housing crash in Edmonton
- Is it a Buyer’s or a seller’s market right now?
Johann: It's still typically a Seller's market, however, the condo market is still soft. There are still multiple offer situations for certain communities and products and this happens when there are not enough good listings for the number of active buyers that are shopping
Shenita: Edmonton is currently experiencing a more Balanced market compared to earlier in the year. However, more popular neighborhoods are still seeing multiple offers while some homes are not selling because of either high inventory or the home is not priced correctly.
- I am looking to buy next year, what is the prediction for next ear’s housing market?
Johann: With the last 2 years being so unpredictable regarding Real Estate, predicting the housing market can be a challenge. Each individual buyer will have many different factors when they decide they are ready to make a purchase. Diving into these factors would be a better path to help determine if next year is a good year to make a purchase.
Shenita: As we get more out of the pandemic world and things become more normalized, it is expected we will follow pre-pandemic trends in sales activity. The peak activity is Spring and it cools off toward the end of the year as Christmas approaches.
- Is the housing market going to stay fairly stable? For how long?
Johann: Trying to time the market to get into it when the prices are relatively low can be tricky. Buyers tend to make a move based on life situations. For buyers waiting for the lowest prices, they could evidently lose out on low-interest rates, if you require a mortgage, or miss out on a property they really wanted. Diving into your situation and needs with a Realtor are key when getting into the market.
Shenita: The Edmonton market has returned to a more balanced market as we approach the holiday season
- Is this my forever home? and do I renovate or hold off to eventually buy again?
Johann: A homeowner needs to do their due diligence if they're deciding if/when to sell or if they want to renovate to stay and live in it. There are different factors when you decide whether or not you are already in your forever home, or if it's time to move.
Shenita: Clients buy and sell their homes for various reasons (upsizing, downsizing, etc). If your current living situation is not working, then you may want to see what your options are.
- I was wondering if the market is selling low or high right now? Is it a good time to buy or sell?
Johann: In a Seller's market, the homeowners selling their home may see an increase in their home's value, depending on when they purchased it and if they had done any improvements to it.
Shenita: Sale prices on homes in Edmonton in 2021 are the highest they have been in the last 10 year
- How will I be able to sell my condo for a decent price and move into a non-condo or a duplex with low condo fees?
Johann: Marketing the property properly and understanding the current market for your area is key regarding capturing a preferred purchase price. If you are selling and buying in the same market, depending on what you are buying, you should be able to 'break-even, so to speak. Basically, if you sell high, you may buy high. And if you sell low, you will likely buy low. It could be a lateral move.
Shenita: While the Condo market currently seems flat, it depends on which Neighborhood your Condo is located in. If it is saturated with inventory or the type of unit you have is not what is desired, you may have to wait a bit longer. Each person’s story is different as well. Did Sellers buy when prices were higher and don’t have enough equity to move forward? Or have they either owned the home for a very long time or paid down the mortgage? This will affect the sale of their home.
Last Words of Wisdom!!
Johann: Every Seller has a different situation. There are several factors to help decide if it's the right time to buy or sell: How much is owed on your current home (if applicable), when was it purchased, is there equity on the property, etc. How a property is marketed can also help or hinder any sale.
Shenita: The Real estate market is based on supply and demand. This year saw a lower supply of inventory in the Edmonton area, which made the market move and created stronger sale prices. The lower interest rates also allowed buyers to move forward with a purchase. We have to also look at each specific Market or Neighbourhood and the type of home (Single Family, Condos, Duplex/Townhomes). As we all know, the numbers coming out of Vancouver or Toronto are really not what is happening in Edmonton since it is way more affordable here.
These two really know their stuff. But each person has their own personal situation and for more market related specific questions, I encourage you to reach out to them at:
Stay tuned for PART TWO where I answer your burning “mortgage and credit” questions